Great Eastern Shipping Co. Ltd. · NSE:GESHIP
Great Eastern Shipping — The Great Eastern Shipping — Investor Presentation (November 2019)
43 slides from Great Eastern Shipping's investor presentation, Nov 18, 2019
Slide 1: Business Overview
BUSINESS OVERVIEW 18 November 2019
Slide 2: Company’s
Except for historical information, the statements made in this presentation constitute forward looking statements. These include statements regarding the intent, belief or current expectations of GE Shipping and its management regarding the Company’s operations, strategic directions, prospects and f
Slide 3: Corporate Profile
CORPORATE PROFILE Offshore Shipping (Bulk) (Through wholly-owned subsidiary Greatship (India) Limited) Tankers • Crude Dry Bulk Logistics Drilling • Products/LPG India’s largest private sector shipping company over 71 years of experience 3
Slide 4: Shareholding Pattern
FII/FPI 20% Promoters 30% Govt./FI SHAREHOLDING 24% PATTERN Public 19% Shareholding Pattern as on 30 September 2019 4
Slide 5: Fleet Profile
SHIPPING FLEET Fleet DWT Number of Ships Average Age (Yrs.) PROFILE Crude Carriers 1,608,683 12 14.14 Product Carriers 987,207 17 12.04 Gas Carriers 224,113 5 18.17 Dry Bulk Carriers 1,026,462 13 7.05 Total 3,846,465 47 11.94 OFFSHORE Fleet Number of Units Average Age (Yrs.) Jack Up Rigs 4 8.09 Plat
Slide 6: Business Philosophy
BUSINESS PHILOSOPHY
Slide 7: 4 Keys to Our Success
4 KEYS TO OUR SUCCESS In-House Dynamically Strong Diversified technical & managing balance Fleet commercial cycles sheet management 7
Slide 8: Net Debt/Equity & Total Capital Employed (Consolidated)
NET DEBT/EQUITY & TOTAL CAPITAL EMPLOYED (CONSOLIDATED) USD Mn 3,000 0.80 0.70 2,500 0.60 2,000 0.50 1,500 0.40 0.30 1,000 0.20 500 0.10 - 0.00 FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY
Slide 9: Dividend/Share (30+ Years Continuous Dividend)
- 2.00 4.00 6.00 8.00 16.00 10.00 12.00 14.00 INR/Share FY1993 FY1994 FY1995 FY1996 FY1997 FY1998 FY1999 FY2000 FY2001 FY2002 DIVIDEND/SHARE FY2003 FY2004 Dividend/Share FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 Dividend Yield (RHS) FY2012 FY2013 FY2014 FY2015 FY2016 (30+ YEARS CONTINUOUS DIV
Slide 10: ROE & ROCE (Consolidated)
ROE & ROCE (CONSOLIDATED) 45% 40% Average ROCE: 12% 35% Average ROE: 18% 30% 25% 20% 15% 10% 5% 0% ROCE (Consolidated) ROE (Consolidated) Average ROCE Average ROE 10
Slide 11: BWTS & Scrubber Installation Schedule
BWTS & SCRUBBER INSTALLATION SCHEDULE 40 35 35 30 No. of Vessels 25 20 15 12 9 9 10 7 7 5 5 5 2 0 Installed To be Installed CY2020 CY2021 CY2022 CY2023+ BWTS Scrubber • Total 9 Vessels have been fitted with BWTS and 35 vessels are scheduled to be installed with BWTS • 2 Vessels have been fitted with
Slide 12: Shipping Market
SHIPPING MARKET
Slide 13: IMO Regulations on Ballast Water Treatment System
IMO REGULATIONS ON BALLAST WATER TREATMENT SYTEM What is Ballast Water Treatment System(BWTS) IMO regulations? 1. Ballast water has to be taken onboard by ships for stability and can contain thousands of aquatic or marine microbes, plants and animals, which are then carried across the globe. Untreat
Slide 14: IMO 2020
IMO 2020 What is IMO 2020? 1) The International Maritime Organization (IMO) will require shipowners to reduce sulfur emissions from 3.5% currently to 0.5% starting 1st January, 2020. 2) There are two options for shipowners to comply with IMO 2020 sulfur regulations: • Installing a scrubber to enable
Slide 15: IMO 2020
IMO 2020 Type of Fuel Sulfur Content Composition 2020 Possible issues post 2020 Low Availability, Fuel oil from Scrubber HSFO 3.5% refinery Installed Vessels Higher CAPEX for scrubbers Allowed Diesel from the MGO 0.1% refinery including ECA Expensive Areas Blends HSFO with a straight Allowed in Non-
Slide 16: Key Points on Tanker Market
KEY POINTS ON TANKER MARKET Asset •VLCC 5 yr old asset prices increased about 8% Y-O-Y* Prices •Suezmax 5 yr old asset prices increased about 11% Y-O-Y* Freight •BCTI fell by 13% & BDTI rose 41% during Q3CY19 sequentially Rates •U. S. production is up about 1.0 million barrels a day year-on-year, U.
Slide 17: Tankers – Asset Price Movement (5-Year Old)
TANKERS – ASSET PRICE MOVEMENT (5-YEAR OLD) VLCC Suezmax Aframax VLCC Suezmax Aframax 80 180 160 70 Ship Price (in million $) Ship Price (in million $) 140 60 120 50 100 40 80 60 30 40 20 20 10 0 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2018 2018 2018 2019 2019 2019 Wet Bulk asset prices has improved by
Slide 18: Baltic Dirty & Clean Index
1,100 1,300 1,500 1,700 1,900 2,100 300 700 900 500 Nov-14 Feb-15 May-15 Aug-15 Nov-15 Feb-16 May-16 Aug-16 Source – Industry Reports Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 BALTIC DIRTY TANKER INDEX Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 300 400 500 700 800 900 1,000 1,100 600 Nov-14 Fe
Slide 19: Total Oil Supply & Demand
TOTAL OIL SUPPLY & DEMAND Supply Demand Refinery Throughput (RHS) 103 84 million barrels per day million barrels per day 101 82 99 97 80 95 78 93 91 76 89 74 87 85 72 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2015 2016 2017 2018 2017 2017 2017 2017 2018 2018 2018 2018 2019 2019 2019 In Q3CY19 Y-O-Y, ref
Slide 20: Crude & Product Growth
CRUDE & PRODUCT GROWTH • Crude demand growth was marginally negative at approx. 1.4 Mn barrels a day in Q3CY2019 Y-O-Y • Core refined products demand growth was marginally positive by approx. 0.28 Mn barrels a day largely due to negative light distillate demand growth especially Naphtha offset by st
Slide 21: Refinery Margins
REFINERY MARGINS Refining Margins in Asia and Europe were largely flat Y-O-Y whereas in US it was significantly positive due to strong product crack in both light and middle distillates 251 Source – Industry Reports
Slide 22: Crude Oil Imports (US & China)
CRUDE OIL IMPORTS (US & China) 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 9,000 11,500 China Crude Oil total Imports (‘000 bpd) US Crude Oil total Imports (‘000 bpd) 8,500 10,500 9,500 8,000 8,500 7,500 7,500 7,000 6,500 5,500 6,500 4,500 6,000 3,500 Jan Feb Mar Apr May Jun Jul Aug Sep Oct No
Slide 23: Crude Oil Exports (US)
CRUDE OIL EXPORTS (US) 2019 2018 2017 2016 2015 4,000 US Crude Oil total Exports (‘000 bpd) 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct* Nov Dec In Q3CY2019, US exported 40% higher crude oil than Q3CY2018 23
Slide 24: US LPG Exports of Propane, Propylene, Butane & Iso Butane
US LPG EXPORTS OF PROPANE, PROPYLENE, BUTANE & ISO BUTANE 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% US LPG Exports of Propane & Propylene (y-o-y growth in %) US LPG Exports of Butane & Iso Butane (y-o-y growth in %) US VLGC exports grew by 18% in Q3CY2019 Y-O-Y *Butane & Iso Butane data is fo
Slide 25: World Fleet Growth Crude Tankers
WORLD FLEET GROWTH CRUDE TANKERS Tanker Fleet - mn Dwt 30-Oct-19 1-Jan-19 1-Jan-18 1-Jan-17 1-Jan-16 VLCC 244.70 233.34 225.10 213.80 200.00 Suezmax 86.20 81.86 80.60 74.60 71.09 Aframax 69.71 67.07 67.20 66.40 64.37 Total (80k+)* 406.23 381.70 378.90 355.00 335.46 *Includes panamax crude tankers Or
Slide 26: World Fleet Growth Product Tankers & VLGC
WORLD FLEET GROWTH PRODUCT TANKERS & VLGC Product Fleet - mn Dwt 30-Oct-19 1-Jan-19 1-Jan-18 1-Jan-17 LR2 40.80 37.9 36.60 33.50 LR1 27.70 26.9 26.51 25.20 MR/Handy (35k+) 86.44 83.3 82.40 80.40 Total (35k+)* 158.25 150.93 147.61 139.40 *Suezmax Product Tankers included Order Book(mn Dwt) 2019 2020
Slide 27: Key Points on Dry Bulk Markets
KEY POINTS ON DRY BULK MARKETS Asset • Capesize 5 yr old asset prices were down 20% in Q3CY2019 Y-O-Y Prices • Panamax & Supramax 5 yr old asset prices were flat to marginally up in Q3CY2019 Y-O-Y Freight • BDI hits 2,518 on 04-Sep-19 due to supply tightness at loading area. Rates • Q3CY2019, BDI ro
Slide 28: Bulker Asset Prices 5-Year Old
BULKER ASSET PRICES 5-YEAR OLD Capesize Panamax Supramax Capesize Panamax Supramax 180 40 160 140 35 Ship Price (in million $) Ship Price (in million $) 120 30 100 25 80 20 60 15 40 10 20 0 5 0 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2017 2018 2018 2018 2018 2019 2019 2019 Capesize asset prices were down 20% in Q3C
Slide 29: Baltic Dry Index
BALTIC DRY INDEX 2,650 2,450 2,250 Vale’s Dam 2,050 Incident 1,850 1,650 1,450 1,250 1,050 850 650 450 250 Nov-15 Nov-14 May-15 Feb-16 May-16 Feb-15 Aug-15 Aug-16 Nov-16 Feb-17 May-17 Aug-17 Nov-17 May-18 Feb-18 Aug-18 Nov-18 Feb-19 May-19 Aug-19 Nov-19 Baltic Dry Index hit 9 years high of 2,518 in
Slide 30: China Iron Ore & Steel Production
CHINA IRON ORE & STEEL PRODUCTION World Steel China Steel % Growth World % Growth China 2000 15% Steel Production (in Million tonnes) 1500 10% 1000 5% China Steel Production increased 8% in 500 0% 9MCY2019 Y-O-Y 0 -5% 2013 2014 2015 2016 2017 2018 9M20189M2019 China Iron Ore Imports % Change Y-o-Y I
Slide 31: China Coal Imports
-5.0 0.0 5.0 10.0 15.0 -15.0 -10.0 Mn Tonnes Jan-17 Feb-17 Mar-17 Apr-17 May-17 Source – Industry Reports Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Jan-18 Feb-18 Mar-18 Apr-18 CHINA COAL IMPORTS May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 Jan-19 China coal imports change (Y-O-Y) F
Slide 32: World Fleet Growth Dry Bulk
WORLD FLEET GROWTH DRY BULK Fleet - Mn Dwt 30-Oct-19 1-Jan-19 1-Jan-18 1-Jan-17 Capesize 345 335 324 315 Panamax 216 207 202 196 Handymax 207 201 196 189 Handysize 105 98 96 94 Total 873 841 818 794 Orderbook 2019 2020 2021 2022+ Total (mn Dwt) Orderbook 1.3% 6.0% 2.5% 0.3% 10.1% (%Fleet) Slippage A
Slide 33: Scrapping
SCRAPPING Fleet Vessel (mn Dwt) Scrapping (% of beginning world fleet) Category 30 Oct 19 9MCY2019 2018 2017 2016 2015 2014 Crude 406.23 0.56% 4.62% 2.35% 0.35% 0.23% 1.60% Product 158.25 0.31% 1.64% 1.42% 0.62% 0.61% 1.19% Dry Bulk 873.00 0.64% 0.54% 1.77% 3.67% 4.03% 2.25% Scrapping is low for all
Slide 34: Greatship (India) Limited
Greatship (India) Limited (a 100% subsidiary)
Slide 35: Offshore Business Fleet Profile
OFFSHORE BUSINESS FLEET PROFILE Fleet Utilization Current Owned Fleet Extent of coverage of Fleet Count Category fleet's operating Type days (FY20) Jack Up Rigs (350ft) 4 PSV 47% Platform Supply Vessels (PSV) 4 Anchor Handling Tug cum ROVSV 87% 8 Supply Vessels (AHTSV) AHTSV 95% Multipurpose Platfor
Slide 36: Key Points on E&P Markets
KEY POINTS ON E&P MARKETS Q3 CY2019 • Charter rates and utilization have started to pickup form the lows in certain Day Rates geographies. We have started to see the impact in Indian market as well. • Rigs: Total fleet remains broadly same compared to last quarter and over Fleet one year. Growth • O
Slide 37: Offshore E&P Spending
OFFSHORE E&P SPENDING According to various industry reports, after the sharp fall over last 3 years, the E&P spending declined marginally in 2018 and is expected to remain flattish in 2019. Source – Industry Reports 37
Slide 38: Global Fleet Supply Offshore
GLOBAL FLEET SUPPLY OFFSHORE Fleet & Orderbook Number Jackup Rigs AHTSVs PSV Current Fleet 521 1993 1619 Orderbook 56 73 125 O/B to current fleet 10.75% 3.66% 7.7% • YTD CY2019 actual deliveries have been far lower than scheduled. Due to bleak employment scenario owners have refrained from taking de
Slide 39: Financial Results Q2 FY 2019-20
FINANCIAL RESULTS Q2 FY 2019-20 39
Slide 40: Financial Highlights
FINANCIAL HIGHLIGHTS GE Shipping Q2FY20 consolidated Net Loss at Rs. 18.93 Crores Standalone Key Figures Consolidated Q2FY20 Q2FY19 H1FY20 (Amount in Rs. Crs) Q2FY20 Q2FY19 H1FY20 Income Statement 685.01 701.74 1310.35 Revenue (including other income) 899.12 886.09 1726.85 220.03 34.94 384.91 EBITDA
Slide 41: Financial Highlights
FINANCIAL HIGHLIGHTS Standalone Key Figures Consolidated Q2FY20 Q2FY19 H1FY20 Q2FY20 Q2FY19 H1FY20 Key financial figures 32.12% 4.98% 29.37% EBITDA Margin 35.76% 14.10% 33.74% 3.13% -3.34% 3.93% *#Return on Equity (ROE) 2.43% 0.78% 2.58% 5.64% 2.26% 5.95% *#Return on Capital Employed (ROCE) 5.80% 4.
Slide 42: Financial Highlights
FINANCIAL HIGHLIGHTS Breakup of Revenue Days Revenue Days Q2 FY20 Q2 FY19 Owned Tonnage 4,040 4,285 Inchartered Tonnage 7 115 Total Revenue Days 4,047 4,400 Total Owned Tonnage (mn.dwt) 3.85 3.98 Average TCY Details Mix of Spot & Time Average (TCY $ per day) Q2’FY20 Q2’FY19 % Change Days (in %) Q2’F
Slide 43: Thank You
THANK YOU THANK YOU visit us at www.greatship.com 43
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